The trading floor of the Shanghai Stock Exchange in Shanghai Photo: CFP

Nearly 58 percent of the companies listed on the Chinese domestic stock market that have released their financial results reported growth in both revenue and profit in 2023 compared with the previous year, according to a report by the Securities Times newspaper.

Among the 150 listed companies that had published their annual reports as of Saturday, 103 reported revenue growth and 143 said their profits rose, and 11 companies had net profit of more than 10 billion yuan ($1.39 billion). A total of 87 companies reported both higher revenues and profits.

As policy measures aimed at stabilizing economic growth continued to take effect, the high-quality development of listed Chinese companies has been further highlighted, analysts noted.

The 2023 revenue of Poly Developments and Holdings Group Co stood at 347.15 billion yuan, the highest among all listed companies and up 23.49 percent.

Poly, the top Chinese real estate company, said its operating income rose as a result of increased housing deliveries and ongoing real estate projects.  

The operating income of Baoshan Iron & Steel Co was 346.93 billion yuan, followed by China Merchants Bank with 339.12 billion yuan. 

It is good news for listed companies to report higher revenue and earnings, as listed companies are the cornerstone of the capital market, Yang Delong, chief economist at Shenzhen-based First Seafront Fund Management Co, told the Global Times on Saturday. 

"Improving the quality of listed companies is fundamental to achieving high-quality development of the capital market," said Yang.

Chinese policymakers are attaching great importance to listed firms. Chinese Vice Premier He Lifeng on January 29 stressed promoting the high-quality development of listed companies to boost confidence, stabilize the capital market and advance high-quality economic development, demanding efforts to solve the specific challenges and difficulties faced by listed companies and to step up support for quality listed firms.

He said that improving the performance of the listed firms and restoring their investment confidence are important measures to pursue economic progress while maintaining stability, according to the Xinhua News Agency.

In the real estate sector, efforts should be made to establish a financing coordination mechanism for urban housing projects, and promote the implementation of specific financing projects, the vice premier said.

Analysts said that as the Chinese government continued to beef up policy support, the confidence of listed companies in China will reach new heights.

As of February 4, local authorities had completed on-site visits to listed companies in 20 provinces, autonomous regions and municipalities directly under the central government, and helped solve problems that hinder their high-quality development, said the China Securities Regulatory Commission.

Listed companies are an important micro-foundation for high-quality economic development, analysts said. The recent moves will promote the high-quality development of listed companies, help enhance production efficiency and innovation capabilities, and thus promote economic growth.

The number of companies listed on the Chinese stock market had reached 5,346 as of the end of 2023, covering all 90 major sectors of the economy, statistics from the China Association for Public Companies showed.

Listed companies have played an important role in stabilizing the economy, contributing to tax revenue and promoting employment, said analysts.